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JEFFERIES: Twitter’s ‘strong brand’ isn’t adequate (TWTR)

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Everyone has listened of Twitter these days, generally since President Donald Trump has done it his elite platform. But, the “strong brand” of Twitter isn’t adequate for one Wall Street bank.

In a note to clients sent out on Friday, Jefferies downgraded Twitter from “buy” to “neutral,” while lowering its cost aim from $20 to $16.

“Twitter’s global height has extended user engagement, but monetization is slipping,” researcher Brenth Thill wrote. “In social we see a transparent leader in FB. Investor discuss is focused on Twitter’s ability to retreat its -6% year over year income decrease and capture additional share of the digital ad wave.” 

Twitter’s user bottom has been growing at a freezing gait in new quarters. The company combined 0 new monthly active users in its many new entertain and had only 5% some-more users than it did the year before.

Twitter is augmenting its rendezvous somewhat though. Since Jack Dorsey returned to the helm of the company in 2015, slight changes to the height and concentration on “live” have done those already on the height some-more likely to record in any day, Thill said.

The company’s brand, while strong, has unsuccessful to greatfully advertisers. The return on investment from shopping ads on Twitter’s height has been disappointing, according to Thill. In a time where digital promotion grew 15% in the first half of the year, Twitter’s promotion sank 6% since advertisers aren’t getting what they wish from the platform.

However, Thill doesn’t consider Twitter is going away.

“Investors competence ask because not a sell?” Thill writes. “The batch has bounced off a low of ~$14 3x in the last 2 years and we trust new government changes could help to urge the disappearing normal income per user in the nearby term. We will compensate close courtesy to advertiser view over coming months and efficacy of live video.” 

Other companies like Google and Facebook offer better bets on the future of video, according to Thill, and investors are better off watchful to see if new faces at the company can chaperon in a turnaround.

Shares of Twitter are up 1.28% this year.

Click here to watch Twitter’s shares trade in genuine time…

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